Friday, June 01, 2012

We Don't Want Debt to Rise and Burden Children of Grandchildren

Jakarta - Until April 2012 the amount of government debt reached Rp 1,903 trillion. President SBY claimed he did not want this debt to continue to increase and burden the future generations.

This was stated by SBY during a speech at the State Palace, Jakarta, Tuesday (05/29/2012).

"We don't want our debt to continue to increase, and ultimately burden our grandchildren. On the contrary, what we want and do is reduce the debt ratio that we bear, from time to time," explained SBY.

This statement was made by SBY regarding the high budget for fuel and electricity subsidies issued by the government. This causes the budget deficit to increase and eventually the debt increases.

"The large budget for fuel and electricity subsidies also has the potential to increase the state budget deficit, because state revenues are smaller than state expenditures. We must cover this budget deficit, and one way to cover it is usually by looking for new loans or debts. our choice, "said SBY.

SBY said, the budget for fuel and electricity subsidies is very large, and continues to increase from year to year. In 2010, fuel and electricity subsidies reached Rp 140 trillion. In 2011 it increased again to Rp. 256 trillion.

"The increase in subsidies is due to high world oil prices, as well as increased use of fuel and electricity, both by society, transportation or transportation, as well as for industry. The large amount of fuel and electricity subsidies has resulted in reduced government capacity to build infrastructure such as roads, bridges , seaports, and airports, "said SBY.

Therefore SBY said he was determined to reduce fuel and electricity subsidies by running a fuel and electricity saving program.

The total Indonesian government debt until April 2012 reached Rp 1,903.21 trillion, up Rp 99.72 trillion from the position at the end of 2011, which was valued at Rp 1,803.49 trillion. If compared to March 2012, which amounted to IDR 1,859.43 trillion, then government debt would increase by IDR 43.78 trillion.

IWD/The Truth Seeker Media

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